Worldwide derivatives market CME Group has posted a discover of disciplinary motion towards UBS Securities LLC.
Pursuant to a proposal of settlement through which UBS Securities LLC neither admitted nor denied the rule violations upon which the penalty is predicated, the Clearing Home Danger Committee discovered that UBS Securities LLC violated CBOT Guidelines 930.E.1, 930.E.2., 930.F., and 971.A.
In accordance with the settlement supply, the Committee imposed a $50,000 high-quality.
The CBOT guidelines state:
930. PERFORMANCE BOND REQUIREMENTS: ACCOUNT HOLDER LEVEL
E. Requires Efficiency Bond
1. Clearing members should problem requires efficiency bond that will deliver an account as much as the preliminary efficiency bond requirement: a) when efficiency bond fairness in an account initially falls beneath the upkeep efficiency bond requirement; and b) subsequently, when efficiency bond fairness plus present efficiency bond calls in an account is lower than the upkeep efficiency bond requirement.
Such calls should be made inside one enterprise day after the incidence of the occasion giving rise to the decision. Clearing members might name for added efficiency bond at their discretion. However the foregoing, a clearing member is just not required to name for or gather efficiency bond for day trades.
2. Clearing members shall solely scale back a name for efficiency bond by means of the receipt of efficiency bond deposits permitted beneath subsection C. of this rule. Clearing members might cancel a name for efficiency bond by means of: a) the receipt of efficiency bond deposits permitted beneath subsection C. of this rule provided that such deposits equal or exceed the quantity of the whole efficiency bond name; or b) inter-day favorable market actions and/or the liquidation of positions provided that efficiency bond fairness within the account is the same as or better than the preliminary efficiency bond requirement. Clearing members shall scale back an account holder's oldest excellent efficiency bond name first.
F. Launch of Extra Efficiency Bond
Topic to exceptions granted by Trade workers, clearing members might solely launch efficiency bond deposits from an account if such deposits are in extra of preliminary efficiency bond necessities.
971. SEGREGATION, SECURED AND CLEARED SWAPS CUSTOMER ACCOUNT REQUIREMENTS
A. All clearing members should adjust to the necessities set forth in CFTC Laws 1.20 by means of 1.30, 1.32, 1.49 and 30.7, and Half 22 of the CFTC Laws.